Second Method - ISDA Provision: Difference between revisions
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{{fullanat|isda|6(e)(i)|1992}} | {{fullanat|isda|6(e)(i)|1992}} | ||
''Compare with {{isdaprov|Close-out Amount}} under the {{2002ma}}''<br> | ''Compare with {{isdaprov|Close-out Amount}} under the {{2002ma}}''<br><br> | ||
The ''' Second Method''' is a method of determining the {{isdaprov|Early Termination Amount}} due upon close out of an {{1992ma}}. It requires a payment to be made equal to the net value of the terminated transactions, even if this means a payment ''to'' the {{isdaprov|Defaulting Party}}. | The ''' Second Method''' is a method of determining the {{isdaprov|Early Termination Amount}} due upon close out of an {{1992ma}}. It requires a payment to be made equal to the net value of the terminated transactions, even if this means a payment ''to'' the {{isdaprov|Defaulting Party}}. | ||
In case of a termination event under the {{isdama}} it is good to have your payment and calculation methods well-defined. The section {{isdaprov|Payments on Early Termination}} ({{isdama}} Section {{isdaprov|6(e)}} and Schedule 1(f)) covers this. | In case of a termination event under the {{isdama}} it is good to have your payment and calculation methods well-defined. The section {{isdaprov|Payments on Early Termination}} ({{isdama}} Section {{isdaprov|6(e)}} and Schedule 1(f)) covers this. |